Subscribe to this blog

Follow by Email

Search This Blog

Donald Trump terminates preferential trade status (GSP) for India

USNMix Report: The US has
withdrawn GSP status from India,it will be a great deal, traders will have huge losses.

On behalf of the Trump
administration, it was said to end the GSP status that how the US now works
with the Prime Minister Narendra Modi government, it will be decided in the
coming days.

US President Donald Trump
has withdrawn the GSP (Generalized System of Preferences) status, giving a big
blow to India. Trump had announced on March 4 that he was going to take India
out of the GSP program. After this, the notice period of 60 days has expired on
May 3. On behalf of the Trump administration, it was said to end the GSP status
that how the US now works with the Prime Minister Narendra Modi government, it
will be decided in the coming days.

What is GSP status?

The country which gets the
GSP status exports the thousands of goods to the United States without paying
taxes. In such a situation, India will have to pay taxes on whatever goods the
United States exports. Due to tax repayment, India's goods will become
expensive in the US and this will have an impact on its sales. India's exports
can be gradually reduced if India's goods get expensive. The export is not good
for the economy, because India is already struggling with trade deficit. Trade
deficit means when a country's export is lower than its imports. India was the
biggest beneficiary of the GSP program in 2017. In the year 2017, India
exported US $ 5.7 billion under this.

What is the advantage of GSP
status?

A country with GSP status
can sell about 2000 garbage tax free in the US. It also includes automobile
spare parts.

Donald Trump said that India
has not given America equal opportunities to do business in their market. In
this way, India does not have any reason to continue with GSP status. Many US
lawmakers have urged President Trump to not take this decision against India.
But, they did not listen to anyone.